According to a study by the crypto service provider, approval by the SEC of a Bitcoin ETF recorded in the U.S. could trigger an investment of 30 billion dollars.
On Monday, Matrixport, a crypto service provider, underscored the significant link between gold and Bitcoin (BTC), noting that the appeal of BTC as a digital value reserve has been instrumental in boosting its prominence in the crypto arena.
According to Matrixport, Bitcoin’s total market value is 540 billion dollars, which is approximately 10.8% of the market value of physical financial gold. They also noted that the value of gold exchange-traded funds (ETFs) is 200 billion dollars.
Bitcoin ETF with SEC Approval and Expectations in the Crypto Sector
It was emphasized that a potential approval for a spot bitcoin ETF in the U.S. by the Securities and Exchange Commission (SEC) could lead to an investment flow of between 20 and 30 billion dollars, according to the report. It was also stated that this situation could result in a significant increase in the value of the cryptocurrency.
The SEC has expedited the approval process for a spot bitcoin ETF but announced in August that it would delay its decision for all new applications until October. The crypto sector is anticipating a large influx of investment with such an approval. However, the report emphasized that Bitcoin, compared to gold, has an advantage due to the ability to store private keys in memory, thus minimizing the risk of confiscation.
Matrixport research leader Markus Thielen commented,
“In the digital age, storing assets with gold is not only outdated but also leads to some restrictions when crossing borders.”
He also stated,
“Bitcoin addresses this issue by allowing value to be transferred quickly and unnoticed across borders.”
The report further mentioned,
“Thus, considering recent technological developments, Bitcoin’s primary functions are most likely perceived as a store of value similar to gold and as a financial asset for speculative purposes.”